Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
/ W) B8 N7 }% m, C. i- \expect much from Crude Oil producers and future is not with the
) \% A5 z% q. [, v3 s" s, Kcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
' ]5 f: B' I/ b1 t; Scrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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- V8 g! t8 i# u) bRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
! g+ ^- B. S' Z4 e9 bleast $50.00 per barrel. Today, oil price declined by a record amount.

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' F; R9 ]- b1 a+ N' ]/ eThere are several reasons the price of oil is decreasing in the face
0 {; X/ }4 W4 rof so much news. These reasons are:

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# w3 a% V0 {' p# v/ [1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
; }& K* U# ?; n. u6 aArabia.
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- y( G* S- ?3 H' e" h+ e. Y0 E2. New natural gas has been found in Pennsylvania and West Virginia.
. g5 H  b9 A0 @( Y: s! S& mThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
, M6 ?, `9 j) B4 E% {, X' Epotential per acre in some cases is astounding. Many countries are
( X: `1 m( h5 R1 _& Wracing to produce bio fuels.
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& x5 J2 F9 \1 m" t  W5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
6 r5 v% O* x* @4 I1 }" Uconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
7 w6 L3 d) g4 Lolder equipment such as trucks, airplanes, train engines, ships, etc.
2 g7 n2 c8 a  j/ F  P- [1 Qwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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& }% K8 g1 M6 G- xAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
, u1 H# F$ e6 Tavailable at very little cost or risk. The gas is displacing crude
8 p+ s& b, Q2 k3 C) Noil.
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1 J0 V2 I7 }0 i9 J) k' \$ K# k3 q9. Coal is being transformed into a clean burning liquid fuel. The CO2
/ R* X2 G1 c6 r# y8 Gproduced as a byproduct is sold to oil companies for injection into
oil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
/ ]% ^) L/ p( Z" B7 [  Jsource. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
& y+ U) {) s3 d1 dprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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) y  D/ l2 _  o6 h' H+ v2 r% sWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
: h1 R$ |: `# G" v8 ~0 lvalue .....
# U9 s  c2 a3 i" w, v" q) |/ eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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. e& L5 @$ q0 h7 [; h/ cThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only